The three staple exports from Egypt are cotton, cereals, and sugar. The production and export of cotton have been steadily on the increase. In 1867, 1,260,946 quintals (1 quintal =220.46 lbs.) were exported, which figure had risen in 1875 to 2,615,120 quintals. The produce of wheat differs greatly according to the state of the Nile. Thus, while in 1868 1,147,147 ardebs (1 ardeb = about 5 English bushels) were exported, in 1874 there were but 186,723 ardebs, and in 1875 836,997 ardebs. The quantity of sugar exported rose from 8,194 sacks (about 55,000 quintals) to 159,185 sacks (equal to 986,000 quintals) in 1875, after having attained 433,853 sacks in 1874, and 269,378 sacks in 1872. The chief articles of import are manufactured cotton goods, silk, coal, charcoal, building materials, oil, wine, spirits, and machinery. Great Britain stands first as a source of supply, for about 45 per cent. of the whole; Turkey and Syria next, for about one-fifth; France, for rather more than one-tenth; Austria, for about one-fifteenth; Italy, for oneeighteenth; and Barbary, Greece, Belgium, Russia, and Sweden, for the remainder, in the order mentioned.

In May, 1877, the aggregate length of railways which were in operation was 1,763 kilometres (1 kilometre = 0.62 mile). The telegraph-lines, according to J. C. McCoan, had, in 1876, a length of 5,500 miles, and the telegraph-wires of 10,400 miles.

There are at present 140,977 pupils under instruction in the schools. Of these, 111,803 are in primary Arab schools, 15,335 in those attached to mosques, 1,385 are educated by Government, 8,961 by missions and religious communities, and 2,960 in the municipal schools. There are only two female schools returned, those organized by the Khedive; but in the Copt and mission schools, little girls may be found, though very few indeed.

The new Turkish Constitution, published at the close of 1876, met with little favor in Egypt. By successive firmans, the country had arrived at semi-independence, and this reform was looked upon with very suspicious eyes, as it did not expressly recognize any of the concessions that had been won from the Porte. It simply declared that the Ottoman Empire is indivisible, and all subjects of it, without distinction, are Ottomans. Egypt, on the other hand, wished to maintain an individuality as distinct

as possible from the rest of the Empire. Certain of the clauses of the new Constitution seem not only to disregard the firmans of Abdul Aziz, but also to overlook the important transactions which have taken place between the Khedive and Europe-those relating to the reorganization of the native administration of justice, and providing for complete equality of taxation, are in direct conflict with the agreement made by the Khedive with foreign Powers.

The Russian declaration of war was received with little interest in Egypt, although a tributary to Turkey. At first sight, indeed, it seemed to be almost impossible for Egypt to hold herself aloof. As a part of the Ottoman Empire, she was bound, in case of danger to the territorial integrity of the Empire, to furnish troops, money, and all other aid in her power. But to comply at that time with all the demands of the Porte would have been to break faith with Europe. The arrangement entered into with Mr. Goschen and M. Joubert, approved by the Khedive in November, 1876, was looked upon as an international obligation. Both England and France were too deeply involved to allow the revenues of Egypt to be applied to anything but the public debt, without making a protest. Under these circumstances, hesitation on the part of Egypt as to the course to be pursued was natural. Envoys came from the Porte, calling for aid, and Egypt answered that, while troops were ready, the expenses of transport and maintenance were beyond Egypt's power. The Egyptian Parliament was convoked to consider the question, and at first adopted the same policy. Later on, however, it voted a special war-tax, which was to be raised on the land, as an additional impost of 28. per acre. About 10,000 men were collected in Alexandria, and were placed under the command of the Khedive's third son, Prince Hassan. On June 9th, 6,500 of the Egyptian troops were embarked on a large number of vessels belonging to Egypt, and set sail for Constantinople, escorted by five Turkish men-of-war, while the remainder followed in the course of a month.

In February, the Khedive appointed Colonel Gordon Governor of Soodan. În a private letter, dated Cairo, February 17th, Colonel Gordon, speaking of his appointment, says:

His Highness, to-day, has signed the firman. He could not have given me greater powers. He has given me over the Soodan, in addition to the province of the Equator, and the littoral of the Red Sea, absolute financial authority, etc. I am astounded at the powers he has placed in my hands. With the Governor-Generalship of the Soodan, it will be my fault if slavery does not cease, and if these vast countries are not open to the world. So there is an end of slavery, if God wills, for the whole secret of the matter is in the government of the Soodan, and if the man who holds that government is against it, it must cease.

The remonstrances of the Antislavery Society with the English Foreign Office, concerning the slave-trade in the Red Sea, reached the

Khedive in January, and resulted in the organization of an expedition for the suppression of this trade. Three vessels of the Egyptian navy, and one of the Egyptian postal line, were made ready, and placed under the command of McKillop Pasha. It was expected, however, that he would encounter great obstacles, as the greater part of the trade was carried on in Indian vessels, carrying the British flag.

The Khedive, during the early part of the year, sent Morice Bey, a commander in the British navy, on a tour of inspection along the

ISMAILIA, ON SUEZ CANAL.

coasts of the Red Sea. Although the slaveseason had passed, he brought back very valuable information as to the chief centres of the trade, and the manner in which it is conducted. The Khedive at once forwarded the document to Colonel Gordon, with a long autograph letter, in which he assured the colonel that Egypt would loyally cooperate with England in this "measure of humanity and civilization." "Use all the powers I have given you; take every step you think necessary; punish, change, dismiss all officials as you please." Gordon was free to govern as he pleased: he could levy his own army, form his own administration; he had his own Ministry of Finance, and his own fiscal organization. In short, he had as much power at the Equator as the Governor-General of India has in Hindostan, and Egypt, for all administrative purposes, had sundered herself from Central Africa. The character Gordon Pasha made for himself in his first adminstration was fully shown by the enthusiastic reception he received at his capital town, Kartoum, when his firman was read to a crowd of

dignitaries on May 4th. Missionaries and merchants, priests and ulemas, consuls, cadis, and fellaheen, all crowded to see him. “But," says an eye-witness, "it is, above all, the poor country people who look upon him as their savior."

The relations with Abyssinia were of a peaceful character throughout the year. (See ABYSSINIA.)

On September 18th, the French ControllerGeneral, the English Financial Commissioner, and the Secretary of the Egyptian Ministry of

Finance, left for Europe, for the purpose of laying before Mr. Goschen and M. Joubert the necessity of making some arrangement for meeting the Egyptian floating debt of £4,500,000, which was unprovided for in the Khedive's decree of November 18, 1876. The plan proposed was, either to abandon the surplus arising from the Moukbalah, or to increase the verified debt to the requisite amount.

The annual general meeting of the shareholders of the Suez Canal Company was held in Paris, on June 6th, and was unusually well attended. M. de Lesseps's report to the shareholders stated that the net profit of last year had exceeded 2,000,000 francs, an amount which would enable the Company to pay a dividend of 3 francs 55 centimes per share. The dividend paid last year had been only 1 franc 88 centimes per share. During the first five months of the current year the number of ships passing through the canal had increased nearly 91 per cent. on that of the similar period of 1876. The largest ship which had hitherto passed through the canal was an English steamer of 5,000 tons, while another English steamer passed easily from one sea to the other, drawing 24 feet of water. Two questions which had remained unsettled with the Egyptian Government had now been amicably arranged with England. By these arrangements, on the one hand, the British Government, specially represented at the shareholders' meetings as proprietors of 176,602 shares, would deliberate and vote with a maximum of 10 votes; and, on the other hand, the capital of each of the 176,602 shares which might be redeemed, would be handed over to the English Government, the revenue of this capital to be invested in Eng

lish consols, for the benefit of the délégateurs of the Company, till the end of the period of regular delegation-that is to say, for 8 years, unless, in the mean while, parties should desire the question to be decided by a judgment. The most interesting part of the report was that referring to the situation of the canal as affected by the war between Russia and Turkey. Several shareholders had manifested alarm as to the danger of interruption which the navigation of the canal ran amid the events passing in the East. M. de Lesseps hastened to London, in order to come to some understanding with her Majesty's ministers on a question so important to the Company. The proposition to maintain, by a general agreement, the complete freedom of navigation in the canal, which had existed since its opening, in 1869, had been seriously considered, and on his return he received the following declaration from Lord Derby:

Any attempt to blockade or hamper, by any means whatsoever, the canal or its approaches would be considered by her Majesty's Government as a menace to India, and as a serious injury to trade in general. From these two considerations, any such act, which her Majesty's Government hopes and trusts neither of the belligerents will commit, would be incompatible with the maintenance by her Majesty's Government of an attitude of passive neutrality.

MODERN EGYPTIANS.

Lord Lyons, on making this declaration to the Company, added that her Majesty's Government was glad to see that it agreed with the French Cabinet in all that concerned the canal. "Henceforth," the report concluded, "the canal created by your capital and sustained by your union and perseverance will remain outside political complications, because it has now become indispensable to the relations of all nations." After having read the report, M. de

Lesseps observed, amid general applause, that the attitude of the British Government and its categorical declaration were certainly preferable to the scheme of international guardianship he had himself proposed in London. In an official communication to the Department of State at Washington, it was stated. that the Suez Canal, up to the close of 1876, cost the Egyptian Government, in addition to the amount of shares sold to the English Government, over $71,000,000, about half of this sum being interest. This includes the cost of the fresh-water canal from Cairo to Ismailia, and thence to Suez, for the use of the Suez Canal and the stations on its line, including the cities of Port Said, Suez, and Ismailia. This enterprise, so useful to many nations, and especially to England, was one of the first causes of the present financial embarrassment of Egypt. Notwithstanding this great sacrifice in the interests of commerce, Egypt to this time has received no benefit from this canal; but, on the contrary, has sustained constant loss. By the passage of all classes of vessels, with their passengers and cargoes, directly through the canal, considerable commerce is lost to Egypt, and also a large business in freights and passengers, that would otherwise be transported from Alexandria to Suez on the Egyptian railways. It appears from a statement, showing the navigation through the Suez Canal from December 1, 1867, to December 31, 1875, that the entire number of vessels was 6,275-the largest numbers being 4,347 English, 292 Italian, 168 Dutch, 140 Ottoman, 345 Austrian, 118 German, 48 Russian, 82 Spanish, and 10 American. Of the entire number of vessels, 4,406 were commercial steamers, and 1,197 postal steamers. The total number of passengers was 359,036.

The Court of Appeals, on February 18th, gave a decision in which all Egyptian creditors were interested. Two claims had recently been preferred, in first instance, for execution of judgments against the Egyptian Government. In the one case the claim arose on a judgment of the new tribunals for money due-£50,000 -for work done by a contractor on one of the big canals of the country, and distraint was asked for on the money lying in the public Treasury. In the other case, the claim arose on a judgment for £1,500, awarded by an arbitration court, composed of three appeal judges-Messrs. Lapenna, Giaccone, and Scott -appointed by the Khedive to decide certain old claims against the Government. Distraint was sought to be levied on the public money in the hands of the Governor of Alexandria. The lower courts decided that public money could not be seized in distraint at the suit of any private person. The question was again raised, and fully argued before the Appellate Court. The appellant argued that, by the Judicial Treaty, the Egyptian Government is subject to the jurisdiction of the new tribunals; that it comes therefore within the provisions